Dean & DeLuca Owned by Thailand's PACE Closes Stores as Debts Pile Up

[webfact]

Dean & DeLuca Closes Stores as Debts Pile Up

By Julia Moskin

 

File photo

 

Dean & DeLuca, the luxury food chain, began life in 1977 as a downtown Manhattan destination for mascarpone, balsamic vinegar, radicchio and other specialties most Americans had never heard of, much less tasted.

 

Based on the reputation built by the store’s founders, Giorgio DeLuca and Joel Dean, who curated fine food at their airy shop in SoHo, Dean & DeLuca has become a global brand since its first offshoot opened in Tokyo in 2003. As of today, there are more than 60 Dean & DeLuca cafes and markets operating in Asia, and three more in the Middle East.

 

But in the United States, the chain, now owned by a Thai real estate magnate, is foundering. In the last week, the company has confirmed that it is closing three of its nine stores, including a high-profile “concept” store in downtown Manhattan that opened just three months ago.

 

Since it was bought by Pace Development in 2014, Dean & DeLuca has developed all the signs of a company with debt problems: It pulled out of lease agreements; promised and revoked sponsorships; closed its stores in North Carolina, Kansas and Maryland; and has consistently withheld payment from vendors, who are increasingly vocal in their outrage.

 

Small vendors in New York City alone said they are owed hundreds of thousands of dollars. Bien Cuit, a bakery in Brooklyn known for its burnished croissants: $56,000. Colson Patisserie, purveyor of French macarons and other sweets: $24,000. Amy’s Bread, which allowed the company to stock its famous layer cakes: $51,000.

 

Full story: https://www.nytimes.com/2019/07/10/dining/dean-and-deluca-closes-stores.html

 

-- The New York Times 2019-07-12

[bristolboy]

What about the one in Bangkok?

[ThaiBunny]

4 minutes ago, bristolboy said:

What about the one in Bangkok?

I've always regarded it as not worth the money but its Bangkok branches are always full of Thai middle class wannabees

[welovesundaysatspace]

2 minutes ago, ThaiBunny said:

I've always regarded it as not worth the money but its Bangkok branches are always full of Thai middle class wannabees

How do you know they’re “wannabees”?

[ThaiBunny]

Just now, welovesundaysatspace said:

How do you know they’re “wannabees”?

Because they're there

[Bluespunk]

35 minutes ago, webfact said:

Since it was bought by Pace Development in 2014, Dean & DeLuca has developed all the signs of a company with debt problems: It pulled out of lease agreements; promised and revoked sponsorships; closed its stores in North Carolina, Kansas and Maryland; and has consistently withheld payment from vendors,

Were these debt problems present before pace bought the company?

Edited July 12, 2019 by Bluespunk

[lannarebirth]

3 minutes ago, Bluespunk said:

Were these debt problems present before pace bought the company?

That's not the question. Did all the money get laundered yet is the question.

[NCC1701A]

40 minutes ago, webfact said:

Dean & DeLuca has developed all the signs of a company with debt problems: It pulled out of lease agreements; promised and revoked sponsorships; closed its stores in North Carolina, Kansas and Maryland; and has consistently withheld payment from vendors, who are increasingly vocal in their outrage. 

 

Small vendors in New York City alone said they are owed hundreds of thousands of dollars. Bien Cuit, a bakery in Brooklyn known for its burnished croissants: $56,000. Colson Patisserie, purveyor of French macarons and other sweets: $24,000. Amy’s Bread, which allowed the company to stock its famous layer cakes: $51,000.

kind of like a Thai condo developer? 

 

[TallGuyJohninBKK]

37 minutes ago, bristolboy said:

What about the one in Bangkok?

 

One thing I know is they were planning to open a new branch in CentralWorld for a long time, and had wall billboards up marking the space they were planning to use. And then they dropped that plan some months back, and that was confirmed to me by a company staffer.

 

[ThaiBunny]

Hasn't the large one at Chong Nonsi moved to significantly smaller premises? That's what a friend who goes there was telling me

[spidermike007]

I like the one at Em Quartier. It is a little bit expensive, but not over the top. And a nice change of pace. Decent food. Certainly less than what you would pay in the US, at a Dean and DeLuca.

 

Their merchandise and deli stuff however, is completely over the top expensive. And in the US the prices are stunningly high. I just think people have a limited appetite for stupid pricing. 

[P Funk]

It may be a omen for the future of high end stores and restaurants. People are becoming more cost conscious and they have many more choices than before. Unless the quality and/or service is exceptional, most people will not return.

[orchidlady]

Ever since the local branches dropped their iconic sandwich, the reuben, significantly fewer farang and reason I stopped going. 

[ThomasThBKK]

1 hour ago, spidermike007 said:

I like the one at Em Quartier. It is a little bit expensive, but not over the top. And a nice change of pace. Decent food. Certainly less than what you would pay in the US, at a Dean and DeLuca.

 

Their merchandise and deli stuff however, is completely over the top expensive. And in the US the prices are stunningly high. I just think people have a limited appetite for stupid pricing. 

Me too, was going there for lunch often, wasn't expensive at all, however it seems they are no longer listed on the website??

The emquartier one is always full, don't think they make a loss even if rent is expensive.

https://www.deandeluca.com/thailand

 

All thai stores removed????

Edited July 12, 2019 by ThomasThBKK

[3421abc]

The thai new owners started opening locations like it is a McDonald's. Even at the airport there is one.

The moment I noticed them opening many stores I knew the brand would go down the pipes. I bet it will be resold to another company in bankruptcy court in a couple of years or maybe months.

[TallGuyJohninBKK]

Went by the D&D outlet at Central Embassy in BKK on Tues, and they were still open and doing decent business in the afternoon.

 

Last time we were there on a weekend lunchtime, we came in, sat down, were noticed by the wait staff, and then they all seemed to disappear in the room, and we never even got a menu after probably 10 minutes there... Ended up getting up and leaving.